The proposed acquisition will be classified as a reverse takeover under Chapter 10 of the Listing Rules of the UK Listing Authority (the Listing Rules). Accordingly, the Board of TiG has, pursuant to the requirements of the Listing Rules, requested that trading in the Company’s shares be suspended immediately until further notice.
Pursuant to the heads of agreement, both parties have agreed to enter into an inducement fee arrangement whereby, in certain defined circumstances, TiG or Huon will pay a fee of GBP4 million to the other party in the event that the proposed acquisition does not proceed to completion. The acquisition is conditional on several factors, including the satisfactory completion of a detailed due diligence exercise and the approval of shareholders at an extraordinary general meeting.
Huon, which was founded in 1986, has 500 insurance professionals and has offices in the United States, Canada, United Kingdom, Australia, France and Japan. Huon’s principal product is an Internet-ready, end-to-end information management system with components for client management, rating, policy administration, billing, claims administration, agency management and financial reporting. Huon’s services are used by more than 30 of the world’s leading insurers.
A further announcement will be made in due course.
